drew andersen jj cavanaugh gary patterson matthew petrovich
TRANSCRIPT
Import Process of BMW 335i
Drew AndersenJJ Cavanaugh
Gary PattersonMatthew Petrovich
Part of BMW’s 3 Series 3.0 Liter, Twin Power, Turbocharged
6-cylinder engine 300 Horsepower Car & Drivers 10Best 19 years running
BMW 335i SedanOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Route Transportation Carriers
◦ DTC Transport Logistics◦ Wallenius Wilhelmsen Logistics◦ National Transport, LLC
Total Cost - $48,329.00 or €36,827.00
Major Facts and figures
Import ProcessOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
335 I leaves BMW Plant-Dingolfing, Germany
Car is loaded on Inland Freight carrier
(DTC Transport Logistics)
Car is unloaded at port of export (Bremerhaven,
Germany)
Car is loaded on to the ocean carrier (Wallenius-
Wilhelmsen Logistics Oberon)
Car is unloaded at port of destination
(Brunswick, Georgia, USA)
Car must clear customs at the port before loading
Car is loaded on domestic inland freight carrier after
clearing customs(National Transport LLC)
Car is delivered to Critz BMW. Savannah, Georgia
Customer receives car at dealership.
Letter of CreditGoods
Contract
Application
Documents
Letter of Credit
Documents
Documents
Letter of
Credit
Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Letter of CreditOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Based in Germany One of Top 10 auto manufacturers in
the world Core competencies
◦ Innovation◦ High performance◦ Engineering
Critz BMW◦ Based in Savannah◦ Serves Savannah, St. Simon’s, Statesboro,
Brunswick, Hinesville, and Claxton areas.
BMWOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Deutsche Transport Company
◦ Based in Bamberg, Germany
◦ Delivers to 35 European Countries
72 Routes
◦ Handle Intermodal, Warehousing, Customs
Clearance and Logistics Consultation
Foreign Inland TransportOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Dingolfing, Germany to Bremerhaven, Germany
Factory to Port RouteOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
7 ½ Hours or 825 km
Once in Bremerhaven, shipment is inspected and loaded onto RO-RO carrier
Export DocumentsOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Bill of Lading Certificate of Inspection
Export DocumentsOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Certificate of Origin
Commercial Invoice
Export DocumentsOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Packing List
Wallenius Wilhelmsen Logistics
◦ Intermodal transportation company
◦ Specializes in the shipment of automobiles,
agricultural and construction equipment.
◦ Ship 2-3 million vehicles annually
◦ Also handles all vehicle processing, terminal
procedures, and distribution to retailers.
Ocean TransportOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Bremerhaven, Germany ToBrunswick, Georgia
Port to PortOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Lead time for shipping is 19 days
Once arriving in Brunswick, shipment must clear customs inspection
National Transport LLC
◦ Specializes in automotive transportation
◦ Offers open/enclosed trailers for vehicle
transportation
Domestic Inland Transport
Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Port to Dealership RouteBrunswick, Georgia to Savannah, Georgia
Lead time is 1 ½ Hours or 78 miles
Once shipment arrives in Savannah, issuing bank pays advising bank which pays BMW Group.
Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Breakdown of CostsOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Cost Price Form of Payment
BMW 335i base cost
€28,125.45 L/C
Insurance €562.50 Cash
Sales Tax (German)
€4781.33 Cash
Duties (FAS) $984.38 Cash
Domestic Inland Transport (US)
$345 Cash
Foreign Inland Transport (DEU)
€247.60 Cash
Ocean Carriage €719.10 Cash
Total Vehicle Cost
$48,329 or €36,827
Forward Market Hedge was used.
Savings = $352 by choosing the spot rate and exercising the option on an option contract.
Currency HedgingOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Vehicle Price (€)
Exchange Rate Vehicle Price ($)
€28,125.00 Oct 16 (Spot) - $1.3976/€
$39,375.00
€28,125.00 Jan 14 (Forward) - $1.4125/€
$39,727.00
Used Harmonized Tariff Schedule Germany is a general column 1 trade
country The vehicle falls under heading
8703.23.00◦ 2.5% of vehicle cost (FAS) is due for duty
paid Total Duties: (39,375 x .025)= $984.38
Duties PaidOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Harmonized Tariff Schedule
Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Customs ClearanceOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Bill of Lading Certificate of Origin
Customs ClearanceOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Certificate of Inspection Import Declaration
Customs ClearanceOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
EPA Declaration
Commercial Invoice
Customs ClearanceOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Inward Cargo Manifest
Packing List
Customs ClearanceOverview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Surety Bond
Inward Cargo Declaration
BMW 335i leaves Dingolfing, Germany
to Bremerhaven, Germany
BMW travels on RORO from
Bremerhaven to Brunswick, GA
BMW goes through US Customs process
Car is transported from Brunswick to
Critz BMW in Savannah, GA
Payment is transferred from issuing bank to advising bank.
Summary Overview
Flow of Goods/
Documents
Cost Analysis
and Payment
Liquidation
Summary
Questions??